The money borrowed (lent or invested) is called
.
Important Questions on Simple and Compound Interest
The additional money paid by the borrower to the moneylender in lieu of the money used is called _____.
Fill in the blanks:
In simple interest, the principal remains _____ (increases/decreases/constant) for the whole loan period.
In compound interest the _____ goes on changing every conversion period.
The time after which the _____ is added each time to form a new principal is called Conversion period.
If the interest is compounded semi-annually then semi-annually rate is _____ of annual rate.
The interest paid by the banks, post offices, insurance companies is simple interest.
Compound interest is calculated on the amount of the previous year.
In compound interest, the principal remains constant for the whole period.
